The Regionalisation of Laws and Policy on Foreign Investment
Apart from the above, ACIA also provides for other important provisions such as: _ the flexibility to introduce temporary measures on balance of payment; _ the rights of investors and insurance companies for subrogation under any investment related insurance policies; _ the entry and temporary stay of investors’ key personnel and _ transparency. The ability to introduce flexibility on balance of payment measures is a very important policy space for ASEAN Member States. ASEAN Member States suffered major financial set-backs during the 1997–98 Asian financial crisis leading to major financial problems for several main ASEAN Member States such as Indonesia, Malaysia, the Philippines, Thailand and to certain extent Singapore. Indonesia, the Philippines and Thailand had to resort to loans from the International Monetary Fund (IMF) to resolve issues with balance of payment. Malaysia on the other hand refused to accept funding from the IMF and instead introduced capital control, much to the dismay of the international financial analysts, even though this has been proved to be the right policy. Continued uncertainty in the global and regional financial market and economy provides an important impetus for the provision on the flexibility on the balance of payment.
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